warned Thursday that its third-quarter earnings will fall short of analysts' estimates, saying that business conditions have weakened and pricing pressure has continued from the prior quarter.
The maker of adhesives and labels now believes that third-quarter earnings could be about 5 cents a share below the low end of its previous expectation. In July, the company forecast third-quarter earnings of 70 cents to 75 cents a share.
Analysts surveyed by Thomson First Call have projected a profit of 74 cents a share. The company also said that an unfavorable product mix and high costs associated with large orders are contributing to the shortfall.
Shares of Avery Dennison were dropping $1.64, or 3%, to $53.23 and are now down more than 16% for the year.
Avery Dennison, based in Pasadena, Calif., didn't offer new guidance for the full year. Analysts are looking for a profit of $2.88 for the year.
Earlier this week, Credit Suisse First Boston initiated coverage on Avery Dennison with an outperform rating and assigned the company a price target of $63. CSFB analysts weren't immediately available for comment on the company's preannouncement.